AMR's CFO leaves to join Symantec

AugustCole

MichaelPaige

SAN FRANCISCO (MarketWatch) -- The top financial executive at AMR Corp., the parent of American Airlines, is leaving to take up a similar job at security- and storage-software firm Symantec Corp., the companies announced late Monday.

Responsible for the world's largest airline's financial results during a tumultuous period of escalating jet-fuel prices and billions in industry losses, James Beer had been AMR's chief financial officer since December 2003. See full story.

A replacement for Beer, a 15-year American Airlines veteran, hasn't yet been named. He will remain at the carrier until it files its annual report, according to Ft. Worth, Texas-based AMR.

Beer marked his 45th birthday on Monday, the company said.

Since Beer became finance chief, AMR's stock has more than doubled in a rebound from union negotiations that took the carrier to the brink of bankruptcy earlier in 2003. See full story.

Intense cost-cutting in the face of a fuel bill totaling more than $5 billion last year meant scrutinizing the company's operations for ever more ways to hold down expenses. See full story.

The carrier's management ranks run deep, said Michael Roach, of airline consultancy Roach & Sbarra and a former president of America West Airlines.

Joining Symantec

Citigroup analyst Andrew Light wrote in a research note that Beer's move was "a surprise but would appear to be driven by a more lucrative opportunity in another sector rather than anything negative at AMR."

Cupertino, Calif.-based Symantec
SYMC, -3.47%
said that Beer would lead its global finance activities. The incoming executive additionally will be responsible for leading Symantec's corporate development, facilities and operations teams.

Beer will replace Greg Myers, who resigned as Symantec's finance chief last November. Myers had been instrumental in orchestrating the company's nearly $11 billion acquisition of Veritas Software last summer -- one of the industry's biggest mergers ever -- that created one of the world's largest software firms.

"In dealing with the challenges of the airline industry over the last several years, James has demonstrated the ability to address complex problems on a global scale," said Symantec Chief Executive John Thompson.

Along with Meyers' resignation, the company has faced several other high-profile management departures, including the exit of Vice Chairman Gary Bloom -- formerly the chairman and chief executive of Veritas -- announced last month. See earlier related story.

AMR's next CFO

The airline would not say if Beer's replacement will come from within or will be an external candidate. Beer himself had been promoted to the top financial slot.

"We have a lot of strength in our finance department, and I'm sure we will be looking at all of our possibilities," said American Airlines spokesman Tim Smith.

Given the scrutiny of management compensation and executive retention plans by the airline industry's unions, bringing in an outsider could prove difficult.

"I can't imagine what it would take to lure someone who is obviously qualified to be the chief financial officer of a $20 billion corporation," said Roach. "I have to believe they have people inside who are fully qualified to do the job."

Citigroup's Light noted that its likely Beer's replacement will come from within the company.

AMR's still losing money, with a net loss of $861 million in 2005 as jet fuel expenses rose 42% to $5.62 billion.

In 2004, the company lost $761 million and spent $3.97 billion on jet fuel.

Its operating loss of $93 million in 2005, however, was narrower than 2004's $144 million.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.